Shoe Carnival (NASDAQ:SCVL – Get Free Report) and Stitch Fix (NASDAQ:SFIX – Get Free Report) are both small-cap retail/wholesale companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Shoe Carnival and Stitch Fix, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Shoe Carnival | 0 | 3 | 0 | 0 | 2.00 |
| Stitch Fix | 1 | 4 | 1 | 1 | 2.29 |
Stitch Fix has a consensus target price of $6.00, suggesting a potential upside of 17.19%. Given Stitch Fix’s stronger consensus rating and higher possible upside, analysts clearly believe Stitch Fix is more favorable than Shoe Carnival.
Risk & Volatility
Profitability
This table compares Shoe Carnival and Stitch Fix’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Shoe Carnival | 5.06% | 8.75% | 5.05% |
| Stitch Fix | -2.24% | -14.44% | -6.04% |
Valuation and Earnings
This table compares Shoe Carnival and Stitch Fix”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Shoe Carnival | $1.20 billion | 0.40 | $73.77 million | $2.10 | 8.35 |
| Stitch Fix | $1.27 billion | 0.54 | -$28.74 million | ($0.46) | -11.13 |
Shoe Carnival has higher earnings, but lower revenue than Stitch Fix. Stitch Fix is trading at a lower price-to-earnings ratio than Shoe Carnival, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
66.1% of Shoe Carnival shares are held by institutional investors. Comparatively, 71.0% of Stitch Fix shares are held by institutional investors. 35.5% of Shoe Carnival shares are held by insiders. Comparatively, 16.1% of Stitch Fix shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Summary
Stitch Fix beats Shoe Carnival on 8 of the 15 factors compared between the two stocks.
About Shoe Carnival
Shoe Carnival, Inc., together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. The company also operates stores, and sells its products through online shopping at shoecarnival.com, as well as through mobile app. Shoe Carnival, Inc. was founded in 1978 and is headquartered in Evansville, Indiana.
About Stitch Fix
Stitch Fix, Inc. sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags under the Stitch Fix brand. The company was formerly known as rack habit inc. and changed its name to Stitch Fix, Inc. in October 2011. Stitch Fix, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.
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